December 2022 Market Update

December 15, 2022

Happy Holidays and welcome to our December 2022 Market Update!

Do you know what may be one of the best things about this time of year?  We are all focused on things other than the day-to-day whims of our investments!

In an effort to maintain the holiday spirit, November was a good month for stocks.  The S&P 500 rose over 5%.1

Equally as relieving for a portfolio, especially those with bonds the 10-year U.S. Treasury yield declined from over 4% to just above 3-1/2%.2  The best part about this: when yields decline in fixed income, prices rise so most portfolios that held bonds saw prices recover.

The final gift I feel we experienced as we head into the holidays was precious metals, as specifically reflected in the price of gold rose 10% in November.3 

So how long have you been following the words of this column?  The 3 assets we just discussed, stocks, bonds and precious metals form the backbone of most portfolios I believe suit the current environment.  Why?  I’m glad you asked!  I feel the Federal Reserve is juggling between an inflation fight and supporting a weakening economy.  The rate hikes we have been seeing are what I feel are still their efforts to fight inflation.  This has been good for bonds since we can now actually earn interest on savings.  For example, as November wrapped up we could buy a 1-month Treasury that yielded us over 3%.4 

In my opinion, if the Fed switches gears we may very well see rates loosen and I believe that would support stocks.  In the meanwhile, admittedly I feel the environment for stocks remains challenging until that occurs. 

In a nutshell, I feel confident in this 3-prong approach and see no other reason not to enjoy holiday time and some relaxation with family members!

As we come to a close for 2022, I wish you a Happy New Year and Thank You more than you may imagine for your trust and confidence!  Please feel free to reach out with any comments or questions and see ya next year!


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Disclaimers and Sources

1 Source: Thomson ONE Reuters, 12/11/2022

2 Source: CNBC, 10-year U.S. Treasury Yields, 12/11/2022

3 Source: CNBC, Spot price gold, February 2023 Comex contract, 12/11/2022

4 Source: CNBC, 1-month U.S. Treasury Yields, 11/30/2022